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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Young Take] DL Group and Hanwha Group have reached a dramatic agreement to resolve their prolonged conflict over Yeochun NCC (YNCC), paving the way for the government’s broader petrochemical restructuring initiative to accelerate.
According to exclusive reporting by AlphaBiz on November 28, the two groups recently reached a breakthrough on key details related to YNCC’s rehabilitation.
Key Points of the Agreement
1. Hanwha to Sign Annual Chemical Supply Contract
Hanwha has agreed to finalize the long-delayed annual procurement contract for YNCC’s chemical products—considered essential for the company’s survival.
2. Joint Commitment to Government-Led Production Cuts
The parties also agreed that YNCC will take the lead in implementing government-directed petrochemical production cuts. A source familiar with the DL–Hanwha negotiations said YNCC will account for the planned production reduction even if its Ulsan site is not formally included in the government’s cut plan.
The source added that during earlier merger discussions involving Lotte Chemical, all three parties had agreed to fully comply with government restructuring policies.
Roadmap for Survival Measures
Beyond financial support, DL Group and Hanwha Group also agreed on broader restructuring measures for YNCC, including production cuts, facility consolidation, and operational transformation to ensure the company’s long-term viability.
With the two groups now aligned, the government’s petrochemical restructuring principle is expected to move forward rapidly. Hanwha is reportedly preparing to sign the annual supply contract necessary for YNCC’s stabilization.
Alphabiz 김영택 기자(sitory0103@alphabiz.co.kr)
